On the Dash:
- Production at Stellantis’ Toluca, Mexico, plant has been halted since March 14 due to a supplier dispute.
- The supplier demanded more than $70 million in additional payments after previously receiving over $26 million and price increases.
- Windsor, Ontario, plant employing 5,500 workers avoided shutdown after a court-ordered resumption of parts shipments.
A dispute between Stellantis and supplier ZF Chassis Modules (Windsor) has halted production at the automaker’s Toluca, Mexico, plant and threatened operations in Canada, according to a lawsuit filed in Michigan.
Stellantis said the Toluca facility, which produces the Jeep Compass and Cherokee SUV, has been shut down since March 14 after the supplier stopped shipping suspension modules amid a payment dispute. The company said a court order in Mexico could allow operations to resume within the next day or two.
The lawsuit alleges the supplier sought additional price increases on existing contracts and halted shipments earlier this month. Stellantis said the supplier also threatened to stop supplying parts to its Windsor, Ontario, plant unless the automaker agreed to tens of millions of dollars in additional payments.
The Windsor facility, which produces the Chrysler Pacifica minivan and Dodge Charger, faced an imminent shutdown before a Michigan judge issued a temporary restraining order Wednesday requiring the supplier to resume shipments. Stellantis said the plant has not experienced downtime.
The automaker maintains “less than a few hours’ worth of inventory” of the chassis modules, underscoring reliance on continuous parts delivery. The Windsor plant employs 5,500 workers, and any shutdown could extend layoffs beyond the facility to other suppliers.
The dispute dates back to December, when Stellantis said its U.S. affiliate paid more than $26 million and agreed to price increases to prevent a parts stoppage. The supplier later demanded an additional $70 million in cash payments and price increases, according to the complaint.
The supplier, now operating as ZF Foxconn Chassis Modules, is a joint venture between ZF and Foxconn.
Additionally, the case highlights ongoing supply chain vulnerabilities in the automotive industry, where disruptions tied to a single component can halt production. Stellantis is managing the issue as it works through a broader turnaround following a 2025 performance that included $26 billion in charges tied to a reset of its electric vehicle strategy.
A hearing in the case is scheduled for April 6.
